Appendix: Comes vs. Microsoft – exhibit PX0206, as text

MY GUYS CAME BACK WITH THE SAME THINKING. BUT I CAN’T SEE THAT WE NEED THREE SKU’S.
Do You really think we need this or could we just upgrade the guy who has WIN at 99 street and everybody else pays 199 street, virgin or
MS-DOS? How good will Your check be, hard core?
———-
From: Brad Chase
To: Brad Silverberg; Joachim Kempin
Subiect: RE: I am taking a first cut at the Chicago OEM pricing
Date: Tuesday, March 29, 1994 5:16PM

we need to have the $200 product be the product for dos machines.
otherwise we make it easy for oems to ship someone dr dos, pc-dos
or even ms-dos and tell their customers to pay $99 for chicago.
i think that sends the wrong message to our customers, a windows
user should pay less than a “dos-only” customer

I want to have compression into the OEM (and upgrade) product. While there is not unanimity on this yet in the product group, both paulma and I are in
favo[ < g >.

AS BRAD EXPLAINED TO ME. THERE WILL BE HIGHER COMPRESSION IN FROSTING, FINE WITH ME.

yes, we’ll have an sku for virgin machines with srp like $250 – $300. We don’t expect to sell much but realize we need this product.

YESSSSSSSSS!

the upgrade will work on all win machines, but what about dos machines? i believe the current plan is yes, it upgrade dos machines but i consider this an open .question still and the decision will be driven mostly by your needs.

HM, IT MIGHT ENTICE SOME HARDCORE GUYS TO JUST SHIP DOS FOREVER, BUT I

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WOULD CALL THIS SALESMANSHIP. MEANING I CAN LIVE WITH THAT. AS LONG AS IT DOES NOT RUN ON VlGIN PCs I AM AT LEAST SEMI HAPPY.

I understand the frosting content and think You have a good plan there and it will not effect OEM pricing as long as I can get the basic Compression into the OEM product. I am nevertheless confused about the retail pricing, this what [ understand; You will have a $99.- street price all encompassing upgrade (incl.
frosting?), a seperate frosting pack at 49.95 street. Will the upgrade be a hard core upgrade, meaning if You have no WIN on Your PC You cannot upgrade?(how good will the check be ? Easy to crack etc.? Will there be a $299 SRP reference price for a retail product for virgin PCs? The reason why I am asking is to set prices for the DSP channel. If Your street price is $99 and the product has no restrictions I will have hard time to sell to DSPs for $90 with PC bundling restrictions. So the ceiling is very important for us. I have done some more thinking on Chicago and foreward You a memo this week. Some of that needs a product group response.

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Credit: wallclimber

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